Buy Now Pay Later (BNPL)
Buy Now Pay Later (BNPL) is a payment model where you only pay the purchase amount after receiving the goods — either in a lump sum or in instalments. Well-known providers are Klarna, TWINT Pay later and PayPal Pay Later.
Buy Now Pay Later (BNPL)
Buy Now Pay Later (BNPL) is a payment model where buyers pay the purchase amount after receiving the goods or services — either as a total amount after 14–30 days (Pay Later) or in several instalments (Pay in Installments). BNPL providers typically handle credit checks, default risks and billing with the buyer.
For merchants, BNPL offers three advantages: higher conversion (customers are more likely to order when they do not have to pay immediately), higher shopping cart value (instalment payment lowers the barrier to purchase) and risk minimisation (the BNPL provider bears the default risk). However, the costs are higher than for immediate payment methods.
In Switzerland, the most important BNPL options are: Klarna (CH, DE, AT, FR, IT — international), TWINT Pay later (Switzerland only) and the classic purchase on invoice managed by yourself (without External provider). The Swiss BNPL market is growing strongly and is estimated at over CHF 2.5 billion in 2026.
BNPL examples
A customer selects Klarna at checkout and pays for the order after 30 days — the merchant is paid out immediately by Klarna.
A buyer uses TWINT Pay later: she confirms the purchase in the TWINT app and settles the amount within 30 days.
An online shop offers Klarna instalments: CHF 300 in 3 monthly instalments of CHF 100 — interest-free for the buyer, with the costs borne by the merchant.
BNPL FAQ
What is Buy Now Pay Later (BNPL)?
BNPL is a payment model in which buyers only pay after receiving the goods — in a single sum or in instalments. The BNPL provider assumes the credit check and default risk.
Which BNPL providers are there in Switzerland?
The most important BNPL providers in Switzerland are Klarna (international), TWINT Pay later (CH only), Cembra (purchase on account) and the classic purchase on invoice on your own initiative.
What does BNPL cost for merchants?
BNPL is more expensive than instant payment methods: Klarna costs 1.60–2.40% + CHF 0.20–0.30, TWINT Pay later 2.30% + CHF 0.18–0.30. In return, the provider assumes the default risk.
Does BNPL increase your conversion rate?
Yes, studies show that BNPL can increase conversion by 20–30%, especially for higher average order values. Customers are more likely to order when they do not have to pay immediately.
